President Dr Mohamed Muizzu has ratified the Bill on Leasing Uninhabited Islands and Lagoons, which establishes the principles and procedures for designating, leasing, and granting under ‘varuvaa’ uninhabited islands and standalone lagoon areas across the Maldives for various purposes. The President ratified the Bill at a special ceremony held at the President's Office today.
The Bill was passed by the 20th People’s Majlis during the 28th sitting of its second session for 2026, held on Wednesday, 26 August 2026.
The Act sets out the principles and conditions governing the leasing of uninhabited islands for purposes other than tourism. It establishes criteria for designating uninhabited islands and lagoons for economic, industrial, and social purposes and sets out procedures for granting unallocated uninhabited islands under ‘varuvaa’ for maintenance purposes.
Under the previous framework, rent for uninhabited islands was levied at a rate of 10 laari per square metre. To establish a more equitable pricing structure in line with the nation’s expanding economy, the Act revises the applicable rent rates. Rent is set at MVR 3 per square metre for industrial and economic purposes, MVR 2.50 per square metre for fisheries and agricultural purposes, and MVR 2 per square metre for social purposes. Islands granted under ‘varuvaa’ will be subject to an annual fee of MVR 2 per square metre.
Under the framework established by the Act, uninhabited islands and lagoons allocated for various purposes will be designated by the President. Uninhabited islands falling within the jurisdiction of local councils will be allocated by the respective councils, except where they are allocated for tourism, industrial development, or State purposes.
The Act will come into force 30 days from the date of its ratification and publication in the Government Gazette. Upon its commencement, the Act will repeal the Law on Uninhabited Islands of the Maldives (Act No. 20/98).